Parkway Properties Inc Sold Worth $33M Office Properties to Parkway Properties Office Fund II

November 01, 2010 / Elizabeth Buckley, Commercial Property Analyst

Parkway Properties Inc has made public today the sale of two office properties and awaiting the deal to sell the third office property for a total of $33 million to the company’s $750 million fund—the PPOF II or Parkway Properties Office Fund II with Texas’ Teacher Retirement System.

Parkway Properties Inc Sold Worth $33M Office Properties to Parkway Properties Office Fund II

The company’s office properties include a 107,000 square feet office building in Atlanta that is called Falls Pointe, a 128,000 square feet office building—Lakewood II that is also in Atlanta, Georgia, and the 326,000 square feet office complex that is situated in Charlotte, North Carolina—the Carmel Crossing.

Parkway Properties acquired the first mortgage note that is protected by these three office properties on July 30, 2010. The office properties were owned by a joint venture between Parkway Properties Inc and Rubicon US REIT—RubiconPark I.

Acting as the note holder, Parkway Properties consequently foreclosed the office properties Lakewood II and Falls Pointe on October 5, 2010 and then accomplished the transaction of the two office properties for the sum of $8 million to Parkway Properties Office Fund II.

Parkway also foreclosed the office property Carmel Crossing on October 28, and is under an agreement to sell it too to Parkway Properties Office Fund for another $25 million.

A of October 1, 2010, about 75.7 per cent combined occupancy rate for the office properties—Falls Pointe, Lakewood II, and Carmel Crossing, but an extra $7.3 million is needed for building improvements, closing cost, leasing cost, and etc.

The total net buy-out price for the office properties is $33 million or $59 per square foot.

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